Copy of Fundamentals of economics by Cassie Cribbs

1 of 19

Slide Notes

Copy of Fundamentals of economics

Published on Aug 05, 2016

No Description

View Outline

PRESENTATION OUTLINE

Fundamentals of economics

Photo by 7D-Kenny

Economics

Study of how people seek to satisfy their needs and wants by making choices

Photo by terrypresley

Needs

nECESSARY THINGS FOR SURVIVAL

Photo by fatboyke (Luc)

wants

Items that are desired but not NECESSARY to survive

Photo by Yutaka Tsutano

Goods

Physical objects such as shoes and shirts

Photo by Rob Ellis'

services

Activities one person performs for another

Photo by EmsiProduction

Scarcity

Limited quantities of RESOURCES to meet unlimited wants

Photo by bryanesque

Shortage

When producers will not and can't offer goods at price

Photo by arievergreen

opportunity cost

Most desirable alternative given up as the result of a decision

10.

Trade offs

alternative that is sacrifice when you choose one action over another

11.

Factors of production

Resources use to make up all good and services

12.

Land

All natural resources used to produce goods and services

13.

Labor

EFFORT A PERSON DEVOTES TO A TASK WHICH THAT PERSON IS PAID

14.

Capital

2 types: Physical and Human

15.

Physical capital

Human made objects used to create other goods and services

16.

Human Capital

KNOWLEDGE AND SKILLS A WORKER GAINS THROUGH EDUCATION AND EXPERIENCES

17.

Entrepreneurs

Takes a risk to start a business

18.

Marginal cost

additional cost of producing one more unit of a good

19.

Marginal benefit

additional value of consuming one more unit of a good

Slide Notes